Sobha said it continues to enjoy sufficient liquidity from banks and financial institutions to meet obligations.
Bengaluru-based real estate developer, Sobha reported a 30% quarter-on-quarter (Q-o-Q) decline in residential sales value to Rs 488 crore for the April-June period due to lockdown which impacted the business. Average price realisation during the quarter saw a marginal 2% decline on a sequential basis. Its total average price realisation stood at Rs 7,498 per sq ft during Q1 FY21.
“In recent weeks, the measures have eased allowing some construction activities to resume in parts of the country. But demand for both residential and commercial property in India remains tentative and as a result new launches during the quarter remain muted,” it added.
“Despite two months of lockdown, disrupted demand outlook, complete washout of economic activities in the real estate sector, we are happy to announce that we were able to clock 70% of sales volume during Q1 FY21 compared to Q4 FY20. Continuous improvement in our processes, adaptable approach in business, use of technology & online/ digital platforms and cost optimisation has yielded in good operational performance for the company,” the company noted.
Demand has remained consistent in all the cities where it operates in spite of the uncertainties. Sobha said it continues to enjoy sufficient liquidity from banks and financial institutions to meet obligations. On city-wise performance, Sobha said Bengaluru is amongst the least impacted metros so far and has contributed 74% of the sales volume during Q1 FY21.
“With more and more companies opting for work from home, inherent demand for better quality homes, low interest rates and other benefits extended by government, demand is likely to sustain in the coming quarters and organised players are expected to perform better. The level of inquiries from customers are now almost back to pre-Covid levels,” it said.
“We are happy to announce that during the quarter we have achieved sales volume of 650,400 sq ft valued at `488 crore, with a total average realisation of Rs 7,498 per sq ft. The price realisation has also remained stable,” Sobha added.